Usage-based insurance: Big Brother along for the ride

Desjardins General Insurance Group has recently launched usage-based auto insurance (UBI) to its policyholders, Canadian Underwriter reports.

The concept is relatively simple. By attaching a wireless device to the automobile’s onboard computer and mechanics, insurance companies will be able to obtain information about an insured’s driving habits, including acceleration, braking, speed, distance travelled, and the times when the vehicle is being operated.

Insurers are quick to point out that the devices do not have GPS and therefore will not track actual locations where the vehicle is driving. In return for agreeing to opt into this program, drivers could potentially receive a lower annual automobile insurance premium, if their driving habits disclose they are a “safe” or “less risky” driver.

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